CELESTICA INC (CLS)
CA15101Q2071 - Common Stock
We assign a fundamental rating of 7 out of 10 to CLS. CLS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLS gets an excellent profitability rating and is at the same time showing great financial health properties. CLS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make CLS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
CLS had a positive operating cash flow in the past year.
In the past 5 years CLS has always been profitable.
In the past 5 years CLS always reported a positive cash flow from operatings.
1.2 Ratios
CLS's Return On Assets of 6.36% is fine compared to the rest of the industry. CLS outperforms 78.86% of its industry peers.
With an excellent Return On Equity value of 20.73%, CLS belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
CLS has a Return On Invested Capital of 13.55%. This is amongst the best in the industry. CLS outperforms 91.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is in line with the industry average of 8.68%.
The last Return On Invested Capital (13.55%) for CLS is above the 3 year average (8.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 20.73% | ||
| ROIC | 13.55% |
ROA(3y)2.99%
ROA(5y)2.52%
ROE(3y)9.87%
ROE(5y)7.82%
ROIC(3y)8.21%
ROIC(5y)6.5%
1.3 Margins
Looking at the Profit Margin, with a value of 4.08%, CLS is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
CLS's Profit Margin has improved in the last couple of years.
The Operating Margin of CLS (5.61%) is better than 68.29% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 10.47%, CLS is not doing good in the industry: 78.86% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.61% | ||
| PM (TTM) | 4.08% | ||
| GM | 10.47% |
OM growth 3Y33.83%
OM growth 5Y14.59%
PM growth 3Y42.53%
PM growth 5Y15.53%
GM growth 3Y11.64%
GM growth 5Y8.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CLS is still creating some value.
CLS has less shares outstanding than it did 1 year ago.
CLS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CLS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.49 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS's Altman-Z score of 3.49 is fine compared to the rest of the industry. CLS outperforms 60.98% of its industry peers.
CLS has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as CLS would need 2.47 years to pay back of all of its debts.
CLS has a better Debt to FCF ratio (2.47) than 71.54% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that CLS is not too dependend on debt financing.
The Debt to Equity ratio of CLS (0.49) is worse than 74.80% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.52
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
CLS's Current ratio of 1.47 is on the low side compared to the rest of the industry. CLS is outperformed by 79.67% of its industry peers.
A Quick Ratio of 0.87 indicates that CLS may have some problems paying its short term obligations.
CLS has a Quick ratio of 0.87. This is amonst the worse of the industry: CLS underperforms 86.18% of its industry peers.
CLS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.09% over the past year.
The Earnings Per Share has been growing by 17.61% on average over the past years. This is quite good.
CLS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.52%.
CLS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)60.09%
EPS 3Y34.89%
EPS 5Y17.61%
EPS Q2Q%60%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y11.47%
Revenue growth 5Y3.72%
Sales Q2Q%22.33%
3.2 Future
Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 27.49% on average per year.
Based on estimates for the next years, CLS will show a quite strong growth in Revenue. The Revenue will grow by 13.25% on average per year.
EPS Next Y60.56%
EPS Next 2Y35.81%
EPS Next 3Y27.49%
EPS Next 5YN/A
Revenue Next Year21.69%
Revenue Next 2Y15.16%
Revenue Next 3Y13.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.76, which means the current valuation is very expensive for CLS.
Based on the Price/Earnings ratio, CLS is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.65, CLS is valued at the same level.
CLS is valuated rather expensively with a Price/Forward Earnings ratio of 20.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 72.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. CLS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 20.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CLS is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CLS is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.04 | ||
| EV/EBITDA | 15.28 |
4.3 Compensation for Growth
CLS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 27.49% in the coming years.
PEG (NY)0.43
PEG (5Y)1.46
EPS Next 2Y35.81%
EPS Next 3Y27.49%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CELESTICA INC
NYSE:CLS (11/21/2024, 12:15:08 PM)
91.97
+4.99 (+5.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 20.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.43
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 20.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.61% | ||
| PM (TTM) | 4.08% | ||
| GM | 10.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)60.09%
EPS 3Y34.89%
EPS 5Y
EPS Q2Q%
EPS Next Y60.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.52%
Revenue growth 3Y11.47%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y